New Delhi, March 21 -- The government has notified the Income Tax Rules, 2026, which will come into effect from the 1st of next month. The new rules aim to enhance compliance through stricter disclosures while simplifying tax procedures by reducing the number of rules.

The rules mark a major overhaul of procedural and compliance systems under direct taxation. The Ministry of Finance has informed that the rules implement provisions of the Income-tax Act, 2025, replacing older procedural systems and incorporating updated definitions, compliance structures, and new reporting mechanisms. It stated that under the new rules, companies will have to maintain share registers, hold general meetings, and pay dividends only within India. This will i...